Ross Stores Surges 8% After Record Q2 Sales and Raised Full-Year Profit Guidance

Ross Stores posted a blowout fiscal second quarter ended August 1, with net sales of $6.3 billion, up 13% from $5.5 billion a year earlier, driven by double-digit comparable-store sales growth of roughly 10% and stronger customer traffic. Net income nearly doubled year-over-year. The off-price retailer raised its full-year earnings-per-share guidance and projected third-quarter sales growth above analyst expectations, signaling resilient bargain-hunting demand despite an uncertain economic backdrop.

Shares surged roughly 8% to around $246.60 in Friday trading, adding to a premarket gain of nearly 9%. A wave of analyst price-target increases followed the report: Barclays raised its target to $298 from $260, Evercore ISI to $290 from $276, Jefferies to $285 from $265, JP Morgan to $272 from $262, Bernstein to $240 from $230, with Citi and UBS also lifting targets, the latter citing tariff refunds and strong sales trends. Truist raised its target on strong traffic growth.

The results stood in contrast to rival TJX's recent Marmaxx segment miss and reinforced the off-price retail model's appeal as consumers seek value. Management noted that many merchandising and store improvement initiatives are still early-stage, pointing to continued momentum heading into the second half.